1.1                          A bill for an act
  1.2             relating to utilities; modifying certain provisions of 
  1.3             power purchase contracts and biomass fuel exemptions; 
  1.4             amending Minnesota Statutes 1996, section 216B.2424, 
  1.5             subdivision 3; and Minnesota Statutes 1997 Supplement, 
  1.6             section 216B.1645. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.9   216B.1645, is amended to read: 
  1.10     216B.1645 [POWER PURCHASE CONTRACTS OR INVESTMENTS.] 
  1.11     Upon the petition of a public utility, the public utilities 
  1.12  commission shall approve or disapprove power purchase contracts 
  1.13  or investments entered into or made by the utility to satisfy 
  1.14  the wind and biomass mandates contained in sections 216B.2423 
  1.15  and 216B.2424 or other wind or biomass investments as defined by 
  1.16  those sections.  The expenses incurred ~~in accordance with the~~ 
  1.17  ~~contract and the reasonable investments made by a public utility~~ 
  1.18  ~~with the approval of the commission shall be included by the~~ 
  1.19  ~~commission in its determination of just and reasonable rates~~ by 
  1.20  the utility over the duration of the approved contract or useful 
  1.21  life of the approved investment shall be recoverable from the 
  1.22  ratepayers of the utility.  Upon petition by a public utility, 
  1.23  the commission shall approve or approve as modified a rate 
  1.24  schedule providing for the automatic adjustment of charges to 
  1.25  recover the expenses or costs approved by the commission. 
  1.26     Sec. 2.  Minnesota Statutes 1996, section 216B.2424, 
  2.1   subdivision 3, is amended to read: 
  2.2      Subd. 3.  [FUEL EXEMPTION.] Over the duration of the 
  2.3   contract of a biomass power facility selected to satisfy the 
  2.4   mandate in subdivision 5, fuel sources that are not biomass may 
  2.5   be used to satisfy up to 25 percent of the fuel requirements of 
  2.6   a biomass power facility selected to satisfy the biomass power 
  2.7   mandate in subdivision 5.  A biomass power facility selected to 
  2.8   satisfy the mandate in subdivision 5 also may use fuel sources 
  2.9   that are not biomass during any period when biomass fuel sources 
  2.10  are not reasonably available to the facility due to any 
  2.11  circumstances constituting an act of God.  Fuel sources that are 
  2.12  not biomass used during such a period of biomass fuel source 
  2.13  unavailability shall not be counted toward the 25 percent 
  2.14  exemption provided in this subdivision.  For purposes of this 
  2.15  subdivision, "act of God" means any natural disaster or other 
  2.16  natural phenomenon of an exceptional, inevitable, or 
  2.17  irresistible character, including, but not limited to, flood, 
  2.18  fire, drought, earthquake, and crop failure resulting from 
  2.19  climatic conditions, infestation, or disease. 
  2.20     Sec. 3.  [EFFECTIVE DATE.] 
  2.21     Sections 1 and 2 are effective the day following final 
  2.22  enactment.